Families rush to raid pensions amid fears of HMRC inheritance tax raids

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Affluent British families are accelerating efforts to withdraw pension savings and transfer significant sums to their adult children ahead of major inheritance tax changes due in April next year.Financial advisers and pension providers report a rise in requests from clients with large defined contribution pension pots, driven by concern over the approaching tax changes.The reforms, set to take effect from April 2027, will bring most unused pension wealth within the scope of inheritance tax for the first time.From April 6, pension savings left unused at death could be subject to a 40 per cent inheritance tax charge where the total estate exceeds the £325,000 nil-rate threshold.

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TRENDING Stories Videos Your Say Government estimates suggest an additional 10,500 estates will become liable for inheritance tax as a result of the changes, while 38,500 estates are expected to pay more, with average increases of £34,000 compared with current rules.Rachel Vahey, head of public policy at AJ...

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